Episode #8: Part 2, Relationship Wholesaling
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In this episode, host Jeff wraps up the second half of a two-part discussion about Relationship Wholesaling–the Thoughtful Real Estate Entrepreneur’s approach to wholesaling real estate. Jeff discusses the key pillars of how Relationship Wholesalers work with buyers successfully, explains the increased ROI of Relationship Wholesaling, and shares several mistakes he’s made and what he learned from them. For more information, the Thoughtful Real Estate Entrepreneur has published an e-book called Relationship Wholesaling at www.relationshipwholesaling.com.
Links and References in the Episode
Free PDF Guide: 5 Critical Mistakes That Make Most Real Estate Investors Accidentally Lowbrow
We’ve created a free PDF guide just for listeners of the Sleaze-Free Real Estate Investing Podcast, called “5 Critical Mistakes That Make Most Real Estate Investors Accidentally Lowbrow.”
For instant access to the PDF, just go to http://Pod.thoughtfulRE.com
The theme song is an excerpt of “No More” off the album “Golden Era” by Forest For The Trees. You can check them out on Amazon, iTunes, and Spotify.
Full Episode Transcript
This is Jeff from the Thoughtful Real Estate Entrepreneur. Welcome to episode number eight of Sleaze-Free Real Estate Investing. This is a show for those of us who’ve never really felt at home in the We Buy Houses crowd. So in this show, we take a stand against what we call the lowbrow approach, the mainstream guru seminar, distressed seller approach that ends up giving real estate investors slimy reputation. Instead, we discussed the strategies, tactics and philosophies that we call the thoughtful way. And enlightened approach to real estate entrepreneurship that focuses on constantly sharpening sophisticated real estate entrepreneurs, three most critical capabilities number one, seller relations skills, number two deal architecture skills, and number three, opportunity efficient. When all three of these capabilities are successfully emotion, you can make an excellent living today and the long term wealth while creating value for everyone you touch along the way. Show Notes for today’s episode are at thoughtfulre.com/E8. Please do yourself and do us a big favor by hitting that subscribe button in your podcast app. So in the last episode, we discuss part one of Relationship Wholesaling. And so today is part two of Relationship Wholesaling. So as I mentioned in the last episode, it’s very, very top of mind for us this Relationship Wholesaling concept, because we just got done writing an E book called wait for it “Relationship Wholesaling: the advanced playbook for sophisticated entrepreneurs to 5x their results without working harder.” So if you go to RelationshipWholesaling.com, you can get more information about that, and it will start you out with a free download that we call five and a half ways building a huge buyers list is silently killing your wholesale profits. In this last episode, part one we discuss what Relationship Wholesaling is, we discuss how to evaluate the property itself in a relationship, wholesaling situation, how to work with sellers, and how to think about pricing the wholesale deal. So it’d be really good idea to go back and listen to Episode Seven, which is part one, if you have not done so, already, in today’s main course, and we’re going to take on part two. And we’re going to get into the buyer’s side of things, the mistakes that I have made, unfortunately, but fortunately, because there’s lessons with all those, which I will share with you. And we’re going to talk about the ROI side of the relationship, wholesaling approach, you know, our subtitle of the E book says five x the results without working harder. And so we’re going to discuss the principles of how that happens when you’re using the Relationship Wholesaling concept. But first, as always a little bit of food for thought because as trees stop for real estate entrepreneurs, we like to feed our minds with things to think about it, here’s what we’re feeding our minds with today. Today, we’re thinking about the power of silence in conversation and in negotiation. You know, as humans, we just hate awkward silences and conversations. But when we control our own human urge to fill that silence, then we what we do is we put it on the other person to fill that silence. And when they fill the silence, good things can happen. From our perspective. About a month ago, I was on a trip with my wife to Australia, and we were celebrating her birthday. And it is the winter in Oregon as I am recording this now. And it was then the summer and Australia. So it was pretty warm. And it was pretty warm. And as we went up to the Great Barrier Reef area, it was not only warm, but it was also really humid and not from the west coast of the US. And it is not humid here. So any humidity at all, it is just like very difficult for me. And we show up in this town called cans, and cans is right on the on the ocean. And then you get the opportunity there to take a ferry over to a little island where we were actually going to be staying. But we got in probably five hours before our ferry to the island that was going to take off. And so we had, you know, a couple big suitcases and backpacks and it’s like, a million degrees and I’m melting. And so I didn’t know exactly what are we going to do to us or kill the time or whatever to allocate the time before we have to get on the on the ferry and do so in a way that’s going to be somewhat comfortable. So we found the hotel nearby. And we went in there and we were able to just kind of cool down for a few minutes. And I was thinking, well, if we go out, we can’t be hauling these gigantic bags around because it’s just going to be so hot already. We just can’t be doing that. But of course, there’s a film and this is a nice hotel, there’s a film and then a bell desk by the front door. And so I decided to walk over to the Bellman with the bags. And I said, Hello, I would like to store my bags with you please. Now we weren’t staying at this hotel or anything. And I decided it was important to ask for permission. I didn’t say, hey, would it be okay, if I stored my base with you? I said I would like to store my bags with you. And then I was just quiet. He waited. He said, Okay. Are you checking in today? Are you checking out? And I said no, neither at this point. And I kept my answer short and concise. And I let the silence speak for itself. And he said, Well, we don’t normally store bags for people who aren’t staying here. And I just stay quiet. And then he said, trying to fill the awkward silence, he said, but I guess we can probably make an exception this one time. And then he took the bags and the store in the bag safely for us for several hours. And I came back and I tipped him very well, of course. And I told him that I appreciate them doing that. But I was just reminded at that moment as the power of not trying to just foam at the mouth with reasons why they should go ahead and do what I’m asking them to do. Instead, I decided just to let the silence do the negotiating for me. The other thing that I think is really worth noting in that situation is it put the onus on the Bellman to initiate any confrontation if there was going to be any, because I wasn’t creating conference confrontation, I was simply saying, here’s what I would like. And it was up to him then to push back and say no, I can’t do that or to create a conversation, it would have any tension in it, when people tend to not want to create tension. And so we gave them the opportunity to resolve the attention or preempt that attention rather, before ever even came about. By simply doing what it was that I asked him to do. I find that this happens in real estate negotiation a lot too. And one of the one of the situations when I find this happens probably the most for me is when I have concluded my due diligence on a on a deal. And I almost always have some findings that are somewhat unexpected. And I then go back to the cellar, and I present my due diligence findings and ask them, if we can tighten up the deal a little bit and reflect fairly reflect for both of us the additional due diligence findings that I that I have. One thing that’s really important to note for context here is that in my market, we buy a lot of old houses, and we’re in the inner city of Portland. So most of these houses were built in the 20s 30s 40s, maybe the 50s or 60s, but they’re all old by really just about any standards. So there’s one house that we we were in contract to buy beautiful old house, right near where I live for $500,000. And I conducted my due diligence, and when I went to sit back down with the seller in person, and that’s an important point to of course, we do these things in person face to face. And I shared with the seller, some of the things I discovered that were just a little bit unexpected, you know, some some issues with things like electrical and the condition of the roof and some things like that. And I shared some quotes and some bids for those things. And I didn’t say I need a big discount, because of these I just sit here at these prices. And I’m not, you know, I’m a little concerned about that. And then I was just quiet. And within a couple minutes, just by being quiet, the seller said, Well, we can’t sell for less than 475 without causing a lot of trouble. Because, you know, I inherited this property and the appraiser said it’s worth this for so for the estate, you know, we have to pretty much sell it for what the appraiser set or else we’re just asking for problems. And so by being quiet, the seller negotiated for me $25,000. That’s a 5% discount on a $500,000 property by simply presenting some information to them. But then being quite I didn’t even have to ask directly for it. But I presented the information, I led him to come to his own conclusions about what that meant, and about the possibility of losing me as a buyer, etc. And I just let the silence do the negotiating for me. And it resulted in $25,000 discount on the property. So the lesson here is resist the temptation to fill that awkward silence, it is a human desire to want to fill that. So you kind of have to override that in your own mind. But if you if you let it hang there that silence, but the other person fill it, a lot of times they fill it with things that are going to be good for you that you would want them to say. But if you would ask them to say them, they would never do it. That’s today’s food for thought, Hey, everybody, just a quick interruption to tell you about something we’ve put together for you. I don’t know if you’ve ever heard this funny expression, but a powerful one that says you can’t read the label when you’re inside the bottle. Well, real estate investing is kind of like that, when I got started, I was just reading and listening and studying everything I possibly could and taking massive action based on that, which was fantastic. But it took a long time, like a long time for me to realize that so much of what I was learning was actually pretty low brow, I just didn’t have that perspective. And you know, you might be in the same kind of position right now. It’s very difficult to know and to see your own situation clearly when you’re right in the middle of it. So we’ve created a free PDF guide available for download. It’s just for you guys as listeners to sleep free real estate investing, not available to anybody else. And it’s called five critical mistakes that make most real estate investors accidentally low Brown. So you can go get this right now if you’d like get this free PDF guide at pod.thoughtfulre.com. Go grab it and see if you are making any of these five critical mistakes.
Alright, so we’re moving on to the main course of today’s episode. And today’s topic on top real estate entrepreneurship is part two of our discussion on Relationship Wholesaling. So let’s just start by recapping what is Relationship Wholesaling. And here’s our exact definition word for word relationship. wholesaling is developing a seller relationship that secures a worthwhile investment opportunity at thoughtfully placing it with a buyer in a way that adds value to both buyer and seller. Now, a bit of a reminder on context here as well, if you think back a couple episodes to our to our episode about the Triple Threat Acquisition Strategy. The context here is that as you’re engaging in this conversation with this seller, and looking at this deal, you are certain yet at this point that you’re going to be wholesaling it, you are keeping your options open, you’re evaluating it as a wholesale deal you’re evaluating in this as a buy and resell kind of a flip yourself, you’re evaluating it as a long term hold for yourself as well. So that’s the context is you don’t necessarily know it’s going to be a wholesale deal, but you are keeping your eyes ears and mind open to that possibility. But at the point value that our episode here picks up today, when we’re going to start talking about the buyer relations side of wholesaling. At this point, you’re starting to think that it’s probably going to be a wholesale exit strategy that is your primary plan. Because you’ve done your due diligence, you’ve you’ve analyzed your business, where you are in your business, what you needed this moment, the market ability and the viability of all the different paths, and you’re kind of leaning towards wholesaling it, which is at the point you would start talking to buyers. So buyers and the relationship you have with buyers and how you work with them. This, of course is what makes wholesaling unique in general to other forms of real estate, entrepreneurship, you when you already own a property, sell it obviously there’s buyers involved there too. But it’s a different type of engagement in a transaction if you already own something and you’re selling it to somebody else, rather than assigning your rates to buy it to them as you are in a wholesale transaction. And the buyer relationships and the dealing with buyers is also very much where Relationship Wholesaling is most different from lowbrow wholesaling. So in Relationship Wholesaling, there’s really two key focuses that you have as a relationship wholesaler that I think defined the uniqueness of the Relationship Wholesaling approach. And first one is that as a relationship wholesaler, you’re totally aware that you are actually in the business of setting your buyers up to make money. Your job is to create a successful situation for them. So you get paid when you do your job. And your job is to find, secure and arrange a deal where they can make money. So you’re telling is it finding and securing those opportunities they’re telling is whatever they do with the property afterwards. And you have this great symbiotic relationship. So your job is to develop a reputation that when you call, you have a deal, they should start salivating. The second, they see your name on caller ID because that means that there’s an opportunity there for them and set up nicely. Just like putting a ball on a tee and a game of golf, that they can come up and they can hit that ball and they will have a profitable deal. So key key focus number one is that you’re super aware that your job is actually to help other people make money those people being your buyers. And then the second key focus of a relationship wholesaler as it relates to working with buyers is that relationship wholesalers approach is really defined by two words, curated placements, okay, curated placements means that you are not just dangling a deal out there for anybody to buy that you’re actually making a thoughtful recommendation. And offering to place deals with specific buyers. If you think about know, a small a, at a restaurant, and you’re ordering your food and then you ask them for their advice on what wine to have. They take into account. You know who you are, they might ask you a couple questions about your preferences and things like that. There’s certainly taking into account your your meal, what you’re eating. And they’re going to make a recommendation to you. And there, it’s a curated kind of experience there. It’s custom to you. And they’re trying to place that particular wine with you. And the idea here is kind of similar with working with buyers. So to a relationship wholesaler, buyers list is very much a quality over quantity, type of topic. A relationship wholesaler would rather have five to 10 buyers that they don’t really, really well and actually have relationships with than a list in a database of 500 people or just 500 email addresses of people they don’t even really know. And they liked relationship wholesalers, we like to have strong relationships with those that that small list of buyers, but do repeat business with those people. And so in order for all this to happen, you need an actual relationship. You need to know who they are, you need to know what they like to do exactly how they do business. What is their thought process when they’re evaluating it opportunity where some of the uniqueness of how they go about doing their thing. For relationship wholesaler, the ideal buyers are professional buyers of real estate. These are people who know what they are doing. These are not first timers in an ideal situation. They they know what they’re looking for. They know what they’re not looking for. They know how they’re going to go about doing something. And all that results in them be very decisive, and very confident in when your buyers decisive and confident. It just makes everything so much better. The other thing about your ideal buyers being experienced professional buyers of real estate is that they can be relied on to perform right I guess any person, there’s an opportunity for them to flake out but the chances of somebody flaking out are so much less when this is a an established buyer, who knows what they’re doing has done this before. It has a reputation of performing. So there’s so much it seems like conversation in the real estate investing world and especially in the sort of forums and groups around, wholesaling about how you find cash buyers and I, I always laugh a little bit to myself, because I think well get in your car or jump on your bike or go take a walk and look for projects going on. That is pretty straightforward, you can actually see who’s doing projects in your market, because you can see what looks like a construction site, a porta potty sitting up front is usually a pretty good sign that there’s a project going on. And so if you take note of where you see these projects, then you use your public records county website to figure out who the owner is, it’s really not too difficult to see who’s actively involved in the market. And if it’s an active job site, there’s a good chance you might just be able to walk up onto the site and and introduce yourself and ask who the owner is and start to establish relationship that way. Sure, you can you can get list of buyers in various ways. And there’s always seems like fancy software, options and things now, but I don’t really see the point of that when you don’t need a huge list, what you need is a small list of people you can really get to know and they’re not hard to find because their work is very physical make by its very nature. It’s pretty visible when somebody is working on a project in your market. And one of the nice things about just getting out into the market to is it’s got all sorts of real positive byproducts. When you’re out doing that, you’re also taking that opportunity to look at science that are up for properties for sale, look them up and calibrate your work on the the fine tuning of the calibration of your knowledge and values in your market and seeing what’s going on. Because in neighborhoods, things change on block by block basis. And the more you’re out and about physically on the streets and putting your eyeballs on what’s going on, the better and more calibrated you will be to your overall market. So let’s talk a moment about curated placement. curated placement is really the opposite of blasting out an email to a large list is really the difference between pitching a deal. And offering a deal. You know, when you’re pitching a deal, you’re asking somebody to buy your thing. When you’re offering a deal, you are making a recommendation and you’re you’re applying look somebody who’s going to buy this, there’s no doubt about that. I’m offering it to you first, because I think it best fits you. So the relationship wholesaler, when they’re thinking about curated placement asks this question based on the unique attributes of this deal, which of our buyer relationships would find the most value in this opportunity at this time? Okay, I’m going to read that again. Because I think this question
is so important to frame your your mindset in your mentality around your buyers, based on the unique attributes of this deal, which of our buyer relationships would find the most value in this opportunity at this time. You’re looking at this and you’re you’re saying, based on what I know about this property about this deal about the buyers that I know about how they do business, about their business cycles, about what projects they’re just wrapping up what projects are about to start about how they do everything they do, this particular opportunity would be most valuable to who? And once you know that the answer that question you know who you should be reaching out to? First, it’s really important that you make sure your buyers know your rules of engagement, I find that I want to err on the side of over communicating to them. That one, I have a solar relationship. I’ve made promises to that seller about what’s going to happen, what they’re going to get how it’s going to go, what the timing is going to be bad, I promised them a certain experience. And it has the utmost importance to me to deliver on what I told the seller was going to happen. So when I’m talking with buyers, I really make sure that they know my rules of engagement. And because I take this dead seriously, because that’s my reputation that’s on the line. If I introduce a new person to this party, and they don’t perform, where they make me look bad, it’s me who looks bad, and I don’t don’t like that at all. So miscommunications with buyers are are very dangerous, but they’re also very avoidable. So I like to make sure that they know exactly how my process works, exactly what I will expect them to do. When they decide that they want to move forward with my offering of my curated placement of the deal, exactly what the steps are, that will happen between Ben and closing exactly what I expect of them throughout that process. When I expect those things, what they can do, and what they cannot do. For instance, one of the things I don’t let them do is go introduce themselves to my seller directly, because I don’t want them muddying the waters in the message with the seller about who the players are. And everything I told them that their job is to is to finalize their funding, and to show the closing and be ready to close and everything else is going through me. And I actually created a separate intended to buy on assignment agreement, but I use it every single wholesale transaction now that covers these expectations, I go over them and painful detail with the buyers and actually make them sign their names next to it so that they understand our I am confident that they understand the importance of these things. Talking about pricing and packaging that deal up to present as a curated and placement to your buyers. Again, your job is to set your buyer up for success. And success means a profitable deal. success means they know what they’re getting themselves into. And so you know, your buyer is really effectively they’re buying the purchase agreement that you’ve negotiated therapy, it’s like buying a stack of paper. This is a stack of paper that represents a particular deal that I have negotiated, secured and crafted, that I believe is going to be a successful deal. And they’re basically buying that stack of paper, that gives them the right to close on the deal instead of me. So it’s important to package up the information in a way that helps them to be confident that they know what they’re getting into. So this involves all your due diligence. If you’ve done inspections, all different types of inspections, repairs, the property might be needed both noted by just they tend more people tend to call you have those letters, when you have that situation. And you also have less competition for deals. Because you’re now not marketing to people who are actively seeking a bunch of different bands on their property. That’s just somebody who’s calling you back from your letter. When you’re sending out lowbrow type marketing that says, you know, I’ll make a quick offer for all cash, you can close quickly. And the sellers received 10 of those letters, that type of person is going to call all 10 of those people and get competitive bids. But if you are positioning yourself as much more of a relationship person from the from the get go, the whole dynamics going to be completely different. And so you’re not going to be facing competition for deals I personally, rarely is is there a competing potential buyer in the conversation is the seller is talking to me. And their options are sold the property to me or don’t sell it at all. In most cases, you’ll also often be able to negotiate better prices with sellers because you’ll have this relationship approach which entails not just being nice to them, but actually really listening to them. And understanding how you can craft a deal that meets their needs, that if you can meet their needs better than sometimes the focus on the price is much less. So you might be able to negotiate a much better price with your sellers. When you have this relationship approach. We discussed the idea that with buyers that you can often get more from a buyer for property if you really understand their business, and you ask the right buyer who could be able to pay the most for that particular deal at that time. So that means you’ve now you’ve gotten Lauren price with your seller, a higher price of your buyer. So your margin is better. So your assignment fee or wholesaling fee, your income from that is now greater than it would be otherwise, you multiply that by the increase in your response rate and the sort of increase of of everything else there and you see start to do more deals. And each deal has better margin. You want sort of spending less time and energy placing deals because you don’t have to, you know, blast something out to 500 people and then entertain a whole bunch of different tire kicking type conversations, you’re making one or two phone calls, and you’re getting your deal place that way by people who already know you and like you and trust you and who believe that if you’re bringing them something based on your reputation, then it must be good. And also, I’d say not insignificantly to more of the deals that you do. actually close because you are you taking a relationship approach to both your sellers and your buyers, you’re managing those relationships. And you are you are shepherding those people through the process in a nice and very helpful way. So you’re making sure the seller is meeting there, you know, end of the deal, getting getting things to closing on time, and making sure your buyers living up to their end of the deal. And so more deals get to closing. So the bottom line with the ROI of Relationship Wholesaling is that you can make more money with the same effort, right. So if you’re putting in 40 hours a week now or whatever it might be, you could make more money with the same number of hours and energy of putting into it. Because you’re getting a lot, you’re squeezing a lot more juice out of each deal. Or you can make the same money with with less effort. So you can make the same amount of juice but with fewer lemons that you need to squeeze in order to get it because the ROI of those efforts as much higher. Well, as promised, although I’m embarrassed to share some of the mistakes that I’ve made, I want to talk about some of those errors that I’ve made over the years and lessons that I’ve learned the hard way. They’re always lessons. That’s that’s absolutely a positive silver lining. But I want to talk with you about a few of the things that I screwed up. And what you can take away from that. Pricing errors is one kind of category. I despite discovered a couple times that I just had not been diligent enough in negotiating the price with the seller well enough, I had a deal at one point where the location was was really, really good. And I was thinking dislocation is so good that I’m going to have my buyers just like lined up around the corner, and I’m going to be able to command whatever I wanted. But I didn’t take into us back into account that the market at that time was actually starting to cool a little bit coming off a really hot period. And the buyers were beginning to you know, sense that and to become a little bit more cautious as well, I was looking at the price of this property for this location. And I was thinking, this price is almost unheard of in this location, regardless of the condition of the house. And, and I just I think I just over simplified it a little bit. And so the problem with this was, this then had downstream effects, because my purchase price that I contracted with the seller was was too high. Now my assignment price because I need to make some money are also not proceeding with this deal. My assignment price is now too high. And now I’m calling my best buyers, offering them a curated placement and they’re kind of looking at me like I’m nuts, or like I’m trying to pull pull one over on them or something like that. That’s no good. either. I again, I want people salivating when they see my name, pop up on their caller ID. But at this point now, whatever reputation I had with them before, now they’re thinking, this is this guy is now giving me a dud. And they think that I’ve maybe lost my touch or something like that. So now I’ve kind of damaged my reputation with my buyers. They’re saying no, I’m having a hard time finding a buyer anyway, all because I didn’t negotiate the price hard enough with the seller. Now I did ultimately as a bit of a silver lining, get that particular deal wholesales to a new person I hadn’t met before. So I met a new buyer. And I added that person now to my my understand my my list of buyers who I understand, well, my database of that small list. But it only worked because
their cost structure was lower this person does some of the work themselves, they had some slightly more affordable financing then some other buyers had. And so we kind of got lucky that we were able to find somebody like that, that we didn’t already know that fit well. So a little bit of luck bailed us out on that particular case. But the the the point remains, that the lesson is that you can’t let up on price negotiations and a wholesale situation. And for me as a tree. This is a hard, it’s a hard thing for me because so much in my perspective is that the low brow approach to real estate investing is all about buy low, sell high. And I more than aware of lots of ways that I could pay more for property than somebody else, and still make money in other ways. But when it’s simply a wholesale transaction, price is absolutely, unbelievably important. And I disregarded that a little bit more than I should and it only negotiated a so so price and sort of a good price. And that really came back to haunt me. By the way, I mentioned their you know, their ways that trees can buy property, and make money even at a higher price and other people can. That’s all about the terms that you negotiate. And we’re going to talk so much more about that and coming episodes. And we’re building towards an understanding a foundation that will allow us to discuss those things in greater depth very soon. There’s a whole nother category of errors that I’ve made. Understanding my buyers or buyer kind of profiling, what you’ll quickly find is that less experienced buyers are much more difficult to work with, I have a couple times wholesale the deal to somebody who this was going to be their first flip project, and not a good plan overall, they are because they’re new, or they don’t have the same level of perspective about all of the information that they receive, they don’t have a good frame of reference and a good context for all of the information that they get about a property and about its condition and what needs to be fixed and what doesn’t. You know, as I mentioned earlier, in the episode in my market, we do a lot in older houses, they could be 6070 8090 hundred years old, even in some cases. And it can be difficult for a newer person to understand exactly how to interpret the inspection findings in those types of situations, because it’s not entirely black and white. You know, someone can look at something and say, well, there’s those stairs are not to code. And it’s like, Well, sure news because of social Bill 40 years before the code was even written in there grandfathered in. So it’s not really a problem. But it’s also not to quote unquote, code. And they want to think that things are really black and white, it’s either to code or it’s not to code. And it’s not really that case. And these types of houses that were doing business with, you know, maybe the relevance and context of other things they just don’t understand, like Java to wiring is that is that a deal breaker, it’s extremely common in my market, it’s, it’s even more common than that is having a mix of different types of wearing some dive into some more modernized wiring, you know, looking at a foundation is does this foundation of real issues, or is it just the skin coat on the outside of the foundation that might be crumbling and making a look like the whole thing is collapsing. And so less experienced, buyers just don’t have as much frame of reference for how to interpret those things. And so it can make things a lot more difficult, you can get people who have cold feet, they can, you know, they can take the deal and say that moving forward and then start to act a little squirrelly, and maybe like they’re going to back out. So the lesson learned there is don’t don’t put yourself in position where you’re somebody else’s teacher guinea pig, to a new buyer, so much better if your clients, your buyer clients or people who have experienced and will know how to interpret the information that you put in front of them. And the third category I’ll give you is what I would call buyer relations errors, taking for granted that the buyer understands the code of conduct, without you explicitly explaining it to them. I’ve definitely made some assumptions around that in the past, doing, you know, giving people the benefit of the doubt. And that has not always turned out well. I did a wholesale deal one time where I was introduced to a buyer by somebody else who I knew and and had a decent level of trust with. And I say to them, and then I quickly found out that they had tried to assign it to somebody else. And at that point, I’m like no way this that that’s happening, because I’m not going to lose control of my sellers experience and out of this thing is getting reassigned to other people and marked up along the way that I’m completely losing control of my sellers experience. And I am not willing to leave myself exposed to others who can hurt my reputation and diminish my ability to deliver on the promises that I’ve made to my solar. So this actually resulted in an addendum that I created, which which incidentally, is included as a swipe file and part of this Relationship Wholesaling package. But this addendum expressly states, here’s exactly what our expectations are over you. And of course, then we make them sign that. So the lesson there is err on the side of over communicating with buyers. And not only does it go smoother, but I think that when you have good buyers, they also respect you more for being so focused on the success of the deal. And they respect you for your commitment to your reputation, and your commitment to delivering to the seller. And if you find a buyer who doesn’t respect you for taking extraordinary steps to ensure the seller gets what they want, and then everybody gets a win. And that says a lot about your buyer. And that should probably be a major red flag for you too. So in summary, guys, as we wrap up the second half for conversation about Relationship Wholesaling. If you focus on setting your buyers up for massive success, and you focus on being thoughtful about which buyers, you present your deal to that curated placement approach, you’re just going to have a much more profitable, so deals a much more profitable business and frankly, a more enjoyable and less, you know, less hassle filled into this as well. Again, I just want to remind you, you can learn more about Relationship Wholesaling through all the information we’ve put together in the Relationship Wholesaling package. So that’s RelationshipWholesaling.com, and you can start with a free download called five and a half ways that building a huge buyers list is silently killing your wholesaling profits. We got all sorts of cool bonuses in there like scripts and worksheets for working with sellers when they first call you what to say what questions to ask them how to prepare for your meetings when you meet with them for the first time. And then even after what to do after your meetings, as well as templates and swipe files for your buyer relations side of things like that attended that I mentioned that we included our assignment agreement and so much more. We also include in there something I call my magic selling relations question, video training. So I created a video training, where I go through how I use one particular question when I’m working with sellers that makes all the difference in the world. And and not just the negotiation deal, but in terms of my positioning with them in the first place. So it’s super, super helpful. Thank you for listening to Sleaze-Free Real Estate Investing. On the next episode we’re going to discuss seller financing is a big topic. And I’m going to tell you the story about how I fell in love with it myself. And how and when I realized just how unbelievably powerful it can be. And just as a as a hint, a little bit of a tease. It’s much more powerful than most people realize. It’s not just about the fact that you don’t have to go to a bank to get a loan. It’s so much more than that. So again, please do yourself and do us a big favor by hitting the subscribe button in your podcast app, so that you’ll know the second that the next episode was released. reminder that you can find the show notes for today’s episode including a transcript at thoughtfulre.com/E8. Until next time this is Jeff from the Thoughtful Real Estate Entrepreneur and I’m signing off.
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